| PNM      RESOURCES, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                             |   |
| (In      thousands, except ratio)                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   | Year      Ended December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
| Fixed      charges, as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on long-term debt                                                                                                                                                                                                                                                                                                                                                     |   | $ | 97,691 |   |   | $ | 81,638 |   |   | $ | 84,773 |   |   | $ | 66,042 |   |   | $ | 34,488 |   |
| Amortization      of debt premium, discount and expenses                                                                                                                                                                                                                                                                                                                            |   |   | 6,386 |   |   |   | 6,566 |   |   |   | 4,729 |   |   |   | 3,962 |   |   |   | 3,036 |   |
| Other      interest                                                                                                                                                                                                                                                                                                                                                                 |   |   | 28,967 |   |   |   | 32,242 |   |   |   | 44,918 |   |   |   | 13,734 |   |   |   | 1,976 |   |
| Estimated      interest factor of lease rental charges                                                                                                                                                                                                                                                                                                                              |   |   | 17,632 |   |   |   | 19,308 |   |   |   | 19,235 |   |   |   | 19,934 |   |   |   | 18,843 |   |
| Interest      capitalized                                                                                                                                                                                                                                                                                                                                                           |   |   | 8,301 |   |   |   | 10,419 |   |   |   | 6,128 |   |   |   | 3,626 |   |   |   | 2,445 |   |
| Preferred      dividend requirements of subsidiaries                                                                                                                                                                                                                                                                                                                                |   |   | 685 |   |   |   | 556 |   |   |   | 798 |   |   |   | 4,063 |   |   |   | 881 |   |
|      Total      Fixed Charges                                                                                                                                                                                                                                                                                                                              |   | $ | 159,662 |   |   | $ | 150,729 |   |   | $ | 160,581 |   |   | $ | 111,361 |   |   | $ | 61,669 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings,      as defined by the Securities and Exchange                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commission:                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                        |   | $ | (395,560 | ) |   | $ | 63,112 |   |   | $ | 164,018 |   |   | $ | 76,502 |   |   | $ | 107,060 |   |
| (Earnings)      Loss of equity investee                                                                                                                                                                                                                                                                                                                                             |   |   | 29,687 |   |   |   | (7,581 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Earnings      from continuing operations before income taxes and  investee      earnings                                                                                                                                                                                                                                                                                  |   |   | (365,873 | ) |   |   | 55,531 |   |   |   | 164,018 |   |   |   | 76,502 |   |   |   | 107,060 |   |
| Fixed      charges as above                                                                                                                                                                                                                                                                                                                                                         |   |   | 159,662 |   |   |   | 150,729 |   |   |   | 160,581 |   |   |   | 111,361 |   |   |   | 61,669 |   |
| Interest      capitalized                                                                                                                                                                                                                                                                                                                                                           |   |   | (8,301 | ) |   |   | (10,419 | ) |   |   | (6,128 | ) |   |   | (3,626 | ) |   |   | (2,445 | ) |
| Preferred      dividend requirements of subsidiaries                                                                                                                                                                                                                                                                                                                                |   |   | (685 | ) |   |   | (556 | ) |   |   | (798 | ) |   |   | (4,063 | ) |   |   | (881 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                           |   | $ | (215,197 | ) |   | $ | 195,285 |   |   | $ | 317,673 |   |   | $ | 180,174 |   |   | $ | 165,403 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                             |   |   | N/M | * |   |   | 1.30 |   |   |   | 1.98 |   |   |   | 1.62 |   |   |   | 2.68 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *      The ratio of earnings to fixed charges for the year ended December 31,      2008 is not meaningful since earnings available for fixed charges is      negative. The shortfall in the earnings  available      for fixed charges to achieve a ratio of earnings to fixed charges of 1.00      amounted to $374.9 million for the year ended December 31,      2008. |   |

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